It is not so easy for any old Wing, Wang or Wong to buy up a decent parcel of shares outside of China. There is a limit of how much money can exit China per person:
" People in China, who can normally only convert $50,000 (U.S.) a year in foreign currency, have long been technically barred from buying property overseas, but those rules have not been rigorously enforced.
At the outset of 2017, however, China imposed a series of new documentation requirements on currency transactions and punishments for using money in ways the rules don’t allow. "
extract from 'The Globe and Mail'
Of course, as Orwell expressed in his great book 'Animal Farm', some Chinese people are more equal than others. Those that haven't been strictly regulated to date are certain to be those that are in government or have good government friends.
The big players have got full freedom. They will strike when they see fit. But first they want to see convincing results. No speculative risk for the ultra big money. Chinese foreign investment consortiums have a lot of cash at hand, but they have sustained a lot of significant losses in recent years and they are a lot more cautious.
The thought process is that you might miss out on a 'gold mine' by being too patient or cautious, but you never go broke by being too patient or thorough in your due diligence.
So if there is any near term buying from China, it will most likely be from a few privileged individual punters.
This is not a down ramp. I am just painting the picture as I see it. I am still extremely positive about this one.
My Chinese friends assure me it is on the watch list of a couple big players there. For them the truth will be in the pudding: they have heard the story... if the good news comes and this multi bags it will raise their eyebrows. As for now, there are countless spec stocks both within and outside of China: all claiming to have an incredible opportunity awaiting the buyer. Talk is cheap. Solid facts that underline clear certainty of near term revenue potential will be the only thing that they are interested in.
The yearly chart is dominated with saw tooth patterns.. rapid rises with slow declines. That summarises the fact that everyone knows this is good; it rises quickly on the smell or expectation of news and in most instances it drops reluctantly. With the trading range tightening so far this year, it would suggest that impatient holders have had plenty of time to exit and next leg up will have a lot of strength.
Guessing the timing on this one has always been a tough one. As has been stated many times ' it is not a case of IF but WHEN'.
I am trying to be patient, but I sense it could be a few more months yet before it is worth even thinking about taking some loose change off the table. Knowing what news we await, coupled with the flattening of the chart in the last few months, it is only a matter of time before the real fun and gains begin.
There may be a chance that a progress announcement is due, that may inject some excitement, especially if progress is faster than anticipated. But I am not pinning my hopes on that.
Then there is the US debt ceiling and general global anxiety about a market crash. If this does dip into the 20's during such an event, I don't expect it to stay there too long: it is inconceivable that such an event will have any effect on the bottom line of the business. RAP is not intent on selling a commodity but an incredibly effective and cheap health service.
I have not changed my belief that this has the long term potential to be worth many billions of dollars.
There you have it: my attempt to provide a balanced overview on ResApp.
Cheers,
CT
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